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Business Loans (Volume 2)

BUSINESS LOANS (VOLUME 2)

 

 

By

Word Chapter

 

 

 

Shakespir EDITION

 

 

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PUBLISHED BY:

Word Chapter on Shakespir

 

 

Business Loans (Volume 2)

Copyright © 2016 by Word Chapter

 

 

 

COPYRIGHT NOTICE

 

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior written permission of the publisher.

 

DISCLAIMER

 

All the material contained in this book is provided for educational and informational purposes only. No responsibility can be taken for any results or outcomes resulting from the use of this material.

 

While every attempt has been made to provide information that is both accurate and effective, the author does not assume any responsibility for the accuracy or use/misuse of this information.

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Secure a Business Loan Instantly

Read more Business Loans articles: http://j.mp/29NuPE5

The rapid growth of business all around the world essentially requires fast funding for keeping pace with the challenges. If you are one of those who need a fast loan for your newly launched business, you must find this page on instant business loans and all the information accumulated here really helpful. We live in a modern world where most things are available after a few seconds just with a touch of a button. Likewise, getting quick loans is also possible if you are on the right track. There are a good number of alternative options before you but it is always advised to put your steps with proper consideration and absolute care.

Traditional bank loans can be considered

Most traditional bank loans require large collateral before they give a loan to a small business. These loans usually range from $20,000 to $200,000. And ever since the economic crisis, the majority of small business firms that apply for a traditional loan get rejected. Thankfully there are alternative options to consider.

Instant Business Loan is meant for a small loan

If you find yourself in the situation that you need money for your business and you need it instantly, turning to a traditional bank loan (even if it says it is instant) is not a good idea, as they will only give you instant approval of the loan, and you will have to wait for the funds. So for short term funding you will need to turn to alternative options. Here are some of the options you might consider.

OnDesk is the fastest option

This option is good for you if you need your funds very fast, because OnDesk will give you a loan within 24 hours. It takes very little paperwork, compared to traditional bank loans, and you can get the maximum of $500,000. Just don’t forget that this means really high interest rates. To get a loan from OnDesk you will need to own a business for a year or more.

Fundation has lower interest rates

Fundation online business Loan is the one you should consider if you have some more time to wait because the interest rates are lower. So, in case you can wait for three days you can get a loan $500,000. Some of the requirements are that you own a business for two or more years and that you have at least two employees.

Funding Circle is a peer-to-peer company

Funding Circle is a peer-to-peer option for you and they are a company from the United Kingdom that gives loans to small business. You can get loans from $25,000 to $500,000. Your business needs to be established for at least two years. But the interest rates are not high - from 5.49% to 27.79%.

Get a small personal Loan for your business

It is a bit more complicated to get a loan for your business than to get a personal loan and there are some things that you need to know before you apply for one. You need to have a very good business plan and be extremely organized. Your personal credit needs to be perceived as good if you want to get the loan after applying, because if it’s not you might be considered a risk.

Too much Haste in getting a loan might prove disadvantageous

Even though you probably need the loan in a very short period of time, don’t rush things too much. Take your time and consider all of the options and ask as much questions as you can. You can consider your bank, or a credit union or peer-to-peer loans. Look at all the interest rates and the requirements and the terms and take at least a week time to decide which one works the best for you.

Article highlights

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Initiating new businesses round the world often need quick loans to start off.

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p<>{color:#000;}. Instant access to fast small business loans requires proper research.

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p<>{color:#000;}. Traditional bank loans are one of the best available instant business loans.

*
p<>{color:#000;}. OnDesk is the fastest option for a fast business loan.

*
p<>{color:#000;}. Alternative options for small loans are a little bit slower.

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p<>{color:#000;}. Large collateral is needed for traditional bank loans.

*
p<>{color:#000;}. A small business is usually granted from $50,000 to $500,000.

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p<>{color:#000;}. One should take all things into consideration before choosing a loan for business.

*
p<>{color:#000;}. Having a good business plan will get you a loan faster.

*
p<>{color:#000;}. Personal credit when applying needs to be in order.

Read more Business Loans articles: http://j.mp/29NuPE5

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Role of a Trained Commercial Loan Broker in Today’s Economy

Read more Business Loans articles: http://j.mp/29NuPE5

In the last ten years or so the demand for commercial loans has been growing and the natural thing to consider doing is to trail more professionals to be commercial loan brokers. This essentially means that people will be trained to arrange business loans in the range from $5,000 to $500,000. In this fast paced world, we need trained individuals who are capable to look out of the box and make quick and healthy decisions. The best thing to do in this situation is to train more people to become successful and competent commercial brokers.

A Commercial Loan Broker Serves As a Link

Maybe you are wondering what does a commercial loan broker do, or maybe you have some questions about it, so here is some information. A commercial loan broker is a trained professional who acts as a link between the lender and the business which is seeking the loan. They simply provide a service and do not initiate the loan or provide the finances.

A Commercial Loan is a Funding Contract

A commercial loan essentially is a funding contract with a financial institution of your choice that is debt-based. The business in question may use these funds to do various things, keep the business running successfully, fund innovations, buy new technology, etc. Commercial loans are usually short term and the lenders require the borrowers to submit their annual or monthly financial statements and other kind of business data.

Advantages of Using a Commercial Loan Broker

Businesses sometimes use commercial loan brokers to serve as a link between them and their lenders because it is easier for them to contact one broker who knows all the necessary information then to contact several lenders themselves. Brokers are accustomed to the process of getting a loan and can do the job much faster than the business owner.

Disadvantages of Using a Commercial Loan Broker

The first thing that comes to mind to people is the fee. But keep in mind that now all commercial loan brokers have the same fee. Most of the respectable brokers work for a fee of 1% to 3% and it usually doesn’t go higher. But there are some who have truly insane rates like 30%. Our advice for business owners is to be careful and ask about the broker fee in advance.

Highly Trained Professionals Are Better for the Growing Economy

Commercial banking is an ever-growing part of the financial world and as the demand for commercial loans keep rising so does the need for competent professionals. Different lenders usually specialize in different funding and a trained and commercial loan broker with some experience with get a perfect loan much faster than the average business owner today. And speed and efficiency is what the business owners need.

Commercial Loan Brokers are More Efficient in Getting a Loan than Business Owners

When getting a loan of any kind the best thing that you can do right from the start is lots of reading and research, and most business owners don’t have enough time to do this as it should be done. This is where commercial loan brokers come in. Their extensive and detailed network of lenders is how they get the loan in a fast and efficient way. They simply have more information than the average business owner.

Experienced Brokers Will Give You the Best Loan Option

Commercial brokers (if they are capable and have sufficient experience) will help you and find the perfect funding plan that fits the needs of your business. They know your budget and they know in what direction you want to take your business and with that information they can choose the best lending options available.

Article highlights

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There is a growing need for commercial loans in the global economy.

*
p<>{color:#000;}. Commercial loan brokers have their place in the financial world.

*
p<>{color:#000;}. A loan broker is one who acts as an intermediary.

*
p<>{color:#000;}. Commercial loan brokers are the link between the lenders and the businesses.

*
p<>{color:#000;}. You can get loans from $5,000 to as much as $500,000 for your business.

*
p<>{color:#000;}. There are some pros and cons of using a loan broker when you need to get a loan.

*
p<>{color:#000;}. There are numerous ways in which loan brokers help your business.

*
p<>{color:#000;}. Trained professionals are helping the global economy.

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p<>{color:#000;}. The necessary information on commercial loans you need to know.

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p<>{color:#000;}. The financial world is changing fast.

Read more Business Loans articles: http://j.mp/29NuPE5

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Helpful Information on Small Business Loans and Structured Finance

Read more Business Loans articles: http://j.mp/29NuPE5

Ever since the infamous financial crisis of 2007-08 things in the finance world have changed drastically. The things that were once considered the only option for financing small businesses have now been labeled as traditional, and new, alternative options have arisen to meet the needs of the economy. And it is best to have information on both options and see for yourself what works advantageously for your business and your needs.

Traditional Debt Financing is Provided by Banks

Debt financing means that when a business gets a loan from a bank of their choice that they have agreed to pay back the borrowed sum, plus the interest and that collateral has been established.

The Structure of the Loan

The loan is usually paid back in monthly installments. Nowadays most small businesses find it very difficult to get business loans from a bank, they require a large amount of paperwork and banks tend to favor bigger loans as they bring more profit to the bank than small ones.

Crowd-funding is One Alternative Method

This is one of the two alternative methods to lending that has grown popular in the recent years. And this is how it works: small amounts of money are pledged for a project on a platform that is usually on the internet (like Kickstarter for example). Large amounts of people are participating in this and instead of traditional investors anyone from the general public can invest money.

Peer-to-peer Lending is Getting More Popular Worldwide

The other successful method is peer-to-peer lending where an online service creates a link between lending companies and borrowers, and these can be individuals or businesses. This is considered to be more risky than borrowing from a financial institution like a bank, but they are easier to get for business owners and usually have lower interest rates.

Structured Finance Helps Reduce the Risk

Structured finance is a very complicated and complex part of the finance world that was created around 1980 to help reduce risk. In times when a normal loan is simply not enough for a company, more complex finance instruments are put to use. These kinds of loans are offered only to large borrowers and small businesses are not one of them. Some examples of structured finance are collateralized debt obligations, mortgage-backed securities and syndicated loans.

Small Business Loans are more focused to alternative options after the Financial Crisis

Structured finance has contributed to the downfall of the economy and the financial crisis of 2007-08 and small business loans of today have turned their attention to alternative methods of getting funds as the banks are not trustworthy as they used to be.

Small Businesses are facing challenges across the Globe

Small businesses are still facing challenges every day in the need to find a secure and healthy way to keep their finances in order and to borrow funds without too much difficulty.

The Interest Rates are sometimes high for Small Business Loans

Lending companies know that small businesses have a high need for funds (whether they need to get new equipment and machinery or pay vendors) and sometimes they have high interest rates for these loans.

Lowest Interest Rates in Recent Years

The prime rate is the lowest interest rate the bank or lending company will charge , and in the last 5 years it has been 3.25%. Loans under $100,000 usually have the interest rate around 7% to 8%.

Article highlights

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The financial crisis has changed the way people lend money today.

*
p<>{color:#000;}. Alternative options make lending money easier for business owners.

*
p<>{color:#000;}. Today small businesses have a hard time getting loans from banks.

*
p<>{color:#000;}. Bigger loans bring more profit to banks.

*
p<>{color:#000;}. Crowdfunding platforms are helpful to the economy.

*
p<>{color:#000;}. Online peer-to-peer lending makes borrowing money a fast process.

*
p<>{color:#000;}. Peer-to-peer lending services have lower interest rates than banks.

*
p<>{color:#000;}. There are complex finance instruments for large companies that need an injection of funds.

*
p<>{color:#000;}. It is difficult for small businesses to get loans nowadays from banks.

*
p<>{color:#000;}. Smaller loans have the interest rate of 7-8%.

Read more Business Loans articles: http://j.mp/29NuPE5

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Information Tear Sheet of Small Business Loan

Read more Business Loans articles: http://j.mp/29NuPE5

Investments and loans in the past depended a lot on the gross report of a company’s business fundamentals represented concisely as a fact sheet. It helps the prospective investors to have a strong insight into the company’s real standard. Depending on the reputation in the tear sheet, the potential investors sanction small business loan to the appropriate clients. 

A tear sheet is the mirror of a company’s status

So, a tear sheet is a collection of information on the company’s finances. Out of these documents one can make an estimation of how the company is doing and if it is considered viable for a loan.

The balance sheet is a summary of the company’s finances

The balance sheet is one of the most effective and productive ways to see how a company is financially doing. It consists out of two parts or rather sides: the assets on one side and liabilities and shareholders’ equity on the other side. And it is quite clear from the title of this sheet that the sides need to balance out.

First part of the income statement

For a particular time period of the company’s finances you can look at the income statement, which is also composed out of two sections. The first one is the operating section, and it deals with revenues and expenses from the regular every-day business of the company in question.

Second part of the income statement

And the second part is the non-operating section deals with revenues and expenses that do not have a correlation with the regular business of the company.

Cash Flow gives information on the cash going in and out of the company

The cash flow is the third fundamental part of a tear sheet. And as the title says it gives information on the cash flow of a certain business. To be exact – it gives the net amount of cash and cash-equivalents that flow in and out of the company.

Prepare all the documentation

Three documents discussed above are the first thing that a lender is going to look at when a company applies for a loan. So make sure that you have all of these and that it is in. The best advice for somebody who is looking to get a loan for their company is to be prepared in advance with all the needed documents and to be responsible.

Try to make a good business plan

You will need to show to the lender that you are viable to return the borrowed money and that you can be trusted, so one of the things that you can do is make a good business plan. This will take you some time, but there are helpful tools online that you can use for free and build the plan part by part.

Some other advice for you to consider

You can also give the lender an extensive explanation of how you are planning to use the money and how your company is going to profit from it.

The questions a business owner needs to ask the lender

A good thing to do is to ask the lender about all of the things that might be unclear to you. The interest rate is usually the first thing that comes to mind, and this is very important, but there are other things you need to consider. You can ask in what period of time are you required to return the loan or what the terms are, or is there a specific list of things that the money can be used for.

Article highlights

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A tear sheet is a slang term.

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p<>{color:#000;}. A tear sheet is composed of three parts.

*
p<>{color:#000;}. The balance sheet summarizes the finances of the company.

*
p<>{color:#000;}. The assets column and the liabilities column need to balance out.

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p<>{color:#000;}. An Income statement shows the lender the company’s financial records at a particular time.

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p<>{color:#000;}. A positive cash flow statement means the company is doing well financially.

*
p<>{color:#000;}. Business owners need to prepare the documentation carefully.

*
p<>{color:#000;}. Thinking in advance and being responsible is the best thing a business owner can do.

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p<>{color:#000;}. Preparing a good business plan takes time.

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p<>{color:#000;}. A business owner needs to know what the interest rates for the loan are.

Read more Business Loans articles: http://j.mp/29NuPE5

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Small Business Loan to Fuel your Dreams and Make you Prosperous

Read more Business Loans articles: http://j.mp/29NuPE5

In case you are running your own business you are no exception if you are looking for some more funds to improve the business and make your ideas transfer from paper into the real world. Sometimes it can get difficult to find funding, especially if you are a young entrepreneur or you are just starting your business.

Be patient and positive throughout this process

It takes patience to persuade potential lenders to believe in your idea and your company and let us be honest it takes time to persuade yourself that you can actually do it. But rest assured that there is always a way to make your dreams come true, you just need to work hard and stay true to yourself.

There is a difference between a business loan and a personal loan

There is a huge difference between a business loan and a personal loan, and you need to learn about it if you are planning on getting a small business loan for your company. When a bank is considering whether or not to give you a personal loan the only thing they are interested in is your credit and your income.

Procedures when applying for a business loan

When you apply for a business loan, things change. The bank or some other must look at your chance of success and how much money you can make with the borrowed funds.

Making a good business plan matters a lot

This is one of the most important steps that you need to take, and it will require some time. First of all, the business plan needs to be is detailed and informative. You need to state how you are planning to start and manage the company and how it will fit in the market of today.

Budget, production, sales, etc. should be in your business plan

Your business plan needs to be measurable, with specific dates and specific tasks for each person involved. You need to state things like your expense budget, your deadlines for production and manufacturing, your sales costs and so on. Make the business plan easy to understand and interesting.

You could take crowd-funding into consideration

These days banks are less and less prone to giving small business loans, because they don’t profit enough from small loans and crowd-funding has gained popularity. Crowd-funding is when a group of people fund a certain project together usually over an online platform and it can be a great way for people to start their new projects.

It is not a good idea to use personal assets as collateral

You could find yourself in the situation that the bank is asking you to put down your personal assets as collateral for the loan. This can be very perilous to you, as you don’t know whether your business is going to be successful, and if you go bankrupt, the bank can take your personal property. So, think twice before doing something like that.

Different things can be used as collateral for a loan

This could be your car, or your house or some other property you own. But people pledge all kinds of things as collateral for a loan. It could be stocks and bonds or anything that is considered to have commercial value.

Peer-to-peer loans are an option as well

Peer-to-peer (P2P) lending is perhaps similar to crowd-surfing in the sense that you will not be borrowing the money from a bank. The difference between the two systems is that unlike crowd-surfing where multiple people lend money to an individual, this is a system where one person lends money to the other. You should look through different peer-to-peer online platforms because the interest rates vary from one to the other a lot.

Article highlights

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Every individual desires to make their business dreams a reality.

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p<>{color:#000;}. Try to stay patient because this is a process.

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p<>{color:#000;}. A business loan is not acquired in the same way a personal loan is.

*
p<>{color:#000;}. The bank is going to look at how high your chance of making a profit is.

*
p<>{color:#000;}. You need to make an excellent business plan.

*
p<>{color:#000;}. Investigate the market and the industry of your choice.

*
p<>{color:#000;}. Crowd-funding is an alternative to bank loans.

*
p<>{color:#000;}. It is not highly recommended to use personal assets as collateral for the loan.

*
p<>{color:#000;}. Personal assets can be used as a collateral for a loan.

*
p<>{color:#000;}. Peer-to-peer lending has different interest rates.

Read more Business Loans articles: http://j.mp/29NuPE5

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Certain Benefits of Unsecured Business Loans for Entrepreneurs

Read more Business Loans articles: http://j.mp/29NuPE5

Small businesses around the world always need an injection of capital either to start things or to keep things going as they should. But ever since the financial crisis of 2007 and 2008 the way that people borrow money for their business has drastically changed.

Different bank policies before the financial crisis

Before the infamous crisis people needed to put down collateral to get a loan from the bank, and if they were unable to do this, their loan would not be approved and they had to give up on their dream of starting a successful business. But things have certainly changed since then.

An unsecured business loan is not guaranteed by property

Giving out loans to businesses banks usually require you to put down some form of collateral as a measure of security for the bank. If you do not pay back the loan the bank can then seize that property.

For an unsecured loan you need good credit

An unsecured loan is not guaranteed by something like that, but by your credit. So, in order to get one you need to have high credit ratings. These loans can go from $5,000 to as much as $500,000.

Unsecured loans have higher interest rates

There is a downside to all of this – unsecured loans have higher interest rates than secured loans, because they present more risk to the bank than the other kind. But to put things in perspective for you, these loans still have lower interest rates than the ones on credit cards.

Statistical information on unsecured loans

As you probably already know, banks don’t give a lot of loans to small businesses, because [* small loans do not bring in a lot of profit. In most cases, about 10% of the bank loans go to small businesses. *] Then after that, they do not give unsecured loans that much either. So, perhaps going to your local bank should not be your only consideration.

Non-traditional unsecured business loans for you to consider

The good thing is that bank is not your only option for getting an unsecured loan. There are online platforms for lending that offer their services in these cases. You credit does not has to be up to the standards of the traditional bank, but the interest rates can be higher.

Online lending is really fast and efficient

It takes significantly less time to apply for a loan online that to do so in a bank, which is a good thing if you are in a hurry. In most cases you will be able to get your funds within 48 hours or less.

Calculations in secured loans are based on collateral

When applying for a tradition secure loan, the bank will calculate how much money you can get based on the value of your collateral. Things are a bit different when it comes to unsecured loans.

You can have more funds with an unsecured loan

The amount of money you get will be decided on these factors: the overall health of your business, the amount of experience you have in the field, your cash flow and your business profile. So, you may get more money with putting down collateral.

Article highlights

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Most people need a loan to start their business.

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p<>{color:#000;}. The way money is being lent has changed since the financial crisis of 2007-08.

*
p<>{color:#000;}. Secure business loans are guaranteed by collateral.

*
p<>{color:#000;}. Unsecured business loans do not need personal property as collateral.

*
p<>{color:#000;}. Higher interest rates are to be expected in unsecured business loans.

*
p<>{color:#000;}. Unsecured business loans present more risk to the bank.

*
p<>{color:#000;}. Small loans do not bring a lot of profit to the bank.

*
p<>{color:#000;}. Lending money online is fast and easy.

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p<>{color:#000;}. You can get more money from an unsecured business loan than from a secure one.

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p<>{color:#000;}. Online lenders have more flexible terms.

Read more Business Loans articles: http://j.mp/29NuPE5

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Reasons behind Rejecting your Application for Small Business Loan

Read more Business Loans articles: http://j.mp/29NuPE5

Most small business owners need additional funds from time to time, either to keep the business going or to make some improvements and innovations. If you are a small business owner, chances are there that your loan application has been rejected at least once by now. You may be confused to why this has happened.

Don’t give up just because your application has been rejected

You should know that if your application for a small business loan has been rejected, you are in the majority of small business owners around the globe, and that it is not the time to give up. You need to rethink your strategy, and make some changes.

The reasons why small business loans are rejected

Getting approval from your bank can be a very long and tiring process for a small business owner, and sometimes it is not successful, so here are the most common reasons for it:

1. No collateral or not enough collateral

If you applied for a secured business loan and you don’t have sufficient collateral, or you don’t have any, then you can be sure that your application is going to be rejected. This happens because the bank does not want to risk that amount of money if it is not sure you will be able to repay it. If your business goes bankrupt, then the bank can seize your property that you put down as collateral.

2. Your credit is not good enough

Your credit is what shows the bank or the lender how healthy your business and your finances are. Banks often look both at your personal credit and your business credit when you apply for a loan. If your business is new, you simply don’t have the time to have any credit history, so you can be rejected solely on that.

3. Your cash flow could be the problem

In case your cash flow is looking bad the bank is going to consider you to be risky and your loan application will be rejected. Because if the bank is looking at your cash flow and they see that you are not making any money, or that you are not able to pay your bills, then how will you be able to pay your monthly loan payments on time, or at all.

4. Banks often decline small loans

Most banks don’t prefer giving small loans, under $100,000, because they don’t profit from them. It takes the bank the same amount of time and money to process all loans, but they make more money on bigger ones.

5. The business plan you have might not be impressive

Chances are that you have made a business plan, but that it simply is not up to the standards of the bank or that it is not realistic. But you can change that by making a better one with more research and more planning. If you work at it you can impress the bank with your business plan.

You can reapply after making a few changes

Now that you know why your loan was probably rejected you can work on the issues at hand and present your company in a better light. Getting your loan rejected is not the end of the road for you, it just means you need to look at things from a different perspective.

Apply at more than one bank

Since the financial crash of 2008, some banks find it risky to give loans to small businesses, so make sure you apply to a few different ones. Or you can consider alternative lending options, like crowd-funding or peer-to-peer lending.

Article highlights

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It is a common thing for a small business to need a loan at some point in time.

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p<>{color:#000;}. Most small businesses get their loan application rejected at least once.

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p<>{color:#000;}. You need to make a few changes if you want to succeed.

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p<>{color:#000;}. The loan can be rejected if you don’t have enough collateral.

*
p<>{color:#000;}. The bank can reject the loan because the business credit does not look good.

*
p<>{color:#000;}. If the business is new, there is no credit history for the bank to look at.

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p<>{color:#000;}. Your cash flow is weak.

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p<>{color:#000;}. The loan is not profitable for the bank. So, it has been rejected.

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p<>{color:#000;}. Your business plan is not impressive enough.

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p<>{color:#000;}. You should consider some alternative lending options.

Read more Business Loans articles: http://j.mp/29NuPE5

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Important Questions to Ask Yourself before Going for a Small Business Loan

Read more Business Loans articles: http://j.mp/29NuPE5

If you are small business owner or a starter, you must consider applying for a small business loan. This is a big decision in your life, and to make the process easier we have compiled a list of important questions you need to ask yourself before you do this. It is always easier to do things once you have them mapped out in your head, and this article is here to help.

You can apply for a loan or look for an investor

Are you looking for a loan or an investor? This is the question you should ask yourself first. But to get an investor, you really have to impress someone with your business plan, enough to make them want to invest a large sum of money into it. This is a better option if you are just starting your business, because most banks don’t give loans to new entrepreneurs.

You need to see if you are able to afford a loan

This is a decision that requires planning it for a long term basis. You need to see if the new funds are going to be enough to get your business going and how it will affect your finances in at least the next two years.

The bank has certain criteria when approving a loan

You will need to meet some requirements of the bank if you want to get the loan, so the best thing to do is to prepare them before you apply. Things like making your business plan to the best of your ability, having good credit, having a healthy cash flow and so on.

For a secure loan, you need to have collateral

If you are planning to apply for a secure loan, you need to have enough collateral. Just remember that pledging your personal property as collateral is a very risky thing.

Ask yourself how much money you need

This is the time to make a really good business plan and to see how much money you will need to make your dream a reality.

Take care of your personal finances before you apply

Make sure that all your personal finances are in order and preferably that they are separate from your business finances. Some banks are going to ask to see your personal credit and they will want to know if you have any other loans or a mortgage.

Make sure that you have all be documentation

This can seem like a small thing compared to all the others, but you simply need to make sure that you have all the needed documents. Research shows that many applicants get rejected on the grounds of not having the necessary paperwork.

You need to know how long the process lasts

Ask your bank how long it usually takes for the whole process of getting a loan to actually having money on your account. Maybe you need the money within the week, and your bank takes more time than that to even approve your loan.

Ask them about the interest rate on the loan

And the last thing you should do is to ask your bank how high the interest rate is going to be, to see if you can afford that. You will know how much the bank is going to earn and how much you will need to pay back.

Article highlights

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There are some things to know when you apply for a loan.

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p<>{color:#000;}. The best thing you can do is plan things very carefully.

*
p<>{color:#000;}. You can get an investor instead of a loan.

*
p<>{color:#000;}. Making a perfect business plan can help you along the way.

*
p<>{color:#000;}. You need to see how the loan will affect your finances.

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p<>{color:#000;}. Calculate how much money you are going to need.

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p<>{color:#000;}. You need to have good credit and a healthy cash flow.

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p<>{color:#000;}. See if you have enough collateral for a business loan.

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p<>{color:#000;}. Ask about the interest rates of your loan.

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p<>{color:#000;}. It is good to ask how long the process of getting a loan takes.

Read more Business Loans articles: http://j.mp/29NuPE5

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PayPal: a Reliable Online Lending Service

Read more Business Loans articles: http://j.mp/29NuPE5

There is a plethora of online lending businesses in the recent years, and new ones are popping up everywhere. But sometimes an online service will add a new feature to it and surprise us, like the major player on the scene like PayPal deciding to become a lender as well.

PayPal decided to use all the cash they generated

PayPal created a new option to their customers and merchants as they have decided to use all the money they have amounted to over the years. It is a logical step forward for a business such as theirs and it certainly makes things easier for their users.

PayPal Credit is designed for consumers

The company is letting you use your PayPal account in a similar way in which you would use your credit card. If you have a PayPal account, you can apply for the new Credit option and wait for your approval. In the first four months, you will get interest-free payments, and after that it’s 17.9%.

PayPal Working Capital is designed for merchants

If you are a PayPal merchant, you can apply for this option, but only if your company makes $20,000 a year or more on PayPal. After that they will calculate how much money you can lend from them based on your annual sales. So, you can lend 15% of that amount. That may not seem as much but they are less expensive than other online lenders.

This new option does not make PayPal a bank

So, in case you don’t know, PayPal is a transaction processor, not a bank. The banking partners of PayPal lend the money as the company is not a licensed lender yet.

Here is a better explanation of the process

So, we now understand that PayPal is not a bank, or a licensed lender, but they do own the loan they give to customers and merchants although the bank still is the owner of the account.

Cheaper than other lending services

Most online lending services have very high interest rates on loans, and PayPal has jumped up in front of the competition with a great idea . For example, the interest rate for customers on a loan 19,9% but customers can completely avoid if they pay it back within the agreed time frame.

The repayment program for the merchants is great

For PayPal merchants, there is also a really good way to pay back the loan. PayPal will not charge interest but give the option to merchants to choose a percentage of sales that they will send to PayPal for repaying. There is no time limit, but the borrowing fee is less if the repayment percentage is higher.

The size of the loans is not big

It may be the case that the size of the loans is not as big as with some other online lending platforms like Lending Club and OnDeck, but they have an exceedingly strong brand and a good customer policy and they can draw a lot of people in with the low or nonexistent interest rates.

Easy to get a loan if you are a PayPal merchant

In case you are already a PayPal merchant, it is fairly simple and easy to get a loan, because PayPal already has all the information of your finances they need to have, and you don’t need to collect a huge stack of papers and take it to a bank, all you need to do is click a few buttons and you have your loan.

Article highlights

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Online lending businesses are growing every day.

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p<>{color:#000;}. PayPal has made the decision to join the race.

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p<>{color:#000;}. PayPal users will have an easy time lending money now.

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p<>{color:#000;}. For customers it is like using a credit card.

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p<>{color:#000;}. The merchant program is based on the amount of annual sales on PayPal.

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p<>{color:#000;}. You can borrow money if your sales is $20,000 annually or more.

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p<>{color:#000;}. A merchant can borrow up to 15% of their annual sales.

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p<>{color:#000;}. It will attract people with excellent repayment programs.

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p<>{color:#000;}. The loans are not as big as on other online lending services.

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p<>{color:#000;}. You should know that PayPal is not a bank.

Read more Business Loans articles: http://j.mp/29NuPE5

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The Optimal Way to Compose a Business Loan Proposal

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If you are a small business owner and you are in need of a loan, you are not alone. There are many small business owners who are looking for a way to expand their business and make their dreams a reality. The way to do this is to get more funds for your company and to get a loan. This cannot be done without a good business loan proposal.

The most important part is the business plan

The business plan is the part of the proposal that you need to spend most time on, you really need to put some effort into this. If you want to get a small business loan, the business plan is the first and most important step because it will represent your company and your goals.

Make a short description of your company

This is the opening section of your business plan called the executive summary in which you find a short and interesting way to describe your company to the lenders. You state what your objective is once you get the loan and how much money you will need.

Give a brief history of your business

After that you can get into a more detailed explanation of what your company does and the history of it so far. You can explain how the company fits in the current market and how you are planning to improve upon it with the funds you would like to get.

Put enough data on your finances

This is the part where you explain how your current finances are looking and how you think they are going to look in the next 12 months and further. Provide your cash flow and your balance sheets, and show that your company’s finances are healthy.

Explain in detail how the money will be used

For example, if you are in production, then explain in what ways you will use the money from the start to the finishing product. Or give estimation on how the sales of your products will go. Give the lender a reason to believe in your project and impress them with the way you run your business.

Research the lenders that are available to you

Spare some time and research the lenders that are available to you at this moment and see which ones are offering the best terms. These days there are a lot of online lending services and you need to be careful when you choose one.

Other important documents to add to the proposal

You can add other documents to your loan proposal to make sure that the lender has the best possible understanding of how your company works and how you will both benefit from the loan. Documents like research conducted about the company, studies of the market you are in and so on.

Ask about the repayment plan

Ask your lender about all the things the repayment plan consists of. You need to know what the interest rate is, how many monthly installments there are going to be, what will happen if you are not able to pay one.

Present yourself and your company in the best light

It is important to remember that you need to be an excellent salesman and that you need to present your company in the best way. Use language that is clear and easy to understand and answer any questions that the lender may have for you. Focus on the success of your business plan and the future of your company.

Article highlights

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A business loan is a way to expand your company and move forward.

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p<>{color:#000;}. Many small business owners are looking for a loan these days.

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p<>{color:#000;}. The business plan is the key part of the loan proposal.

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p<>{color:#000;}. Give a brief description of your business and your plans.

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p<>{color:#000;}. Explain how your company will benefit from the loan.

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p<>{color:#000;}. Research the market and explain how your company fits into it.

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p<>{color:#000;}. Give detailed documents on your current finances.

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p<>{color:#000;}. Look through the possible lenders available to you.

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p<>{color:#000;}. Ask the lender everything you want to know about the loan itself.

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p<>{color:#000;}. Present yourself in the most impressive way.

Read more Business Loans articles: http://j.mp/29NuPE5

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Cover image credit: https://www.flickr.com/photos/usdagov/6252781382/

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Business Loans (Volume 2)

From small to corporate business owners and/or managers may need business loans. In this modern age, it is getting hard to run business without any loan when a business starts growing. When a business is growing, it is hard to cover all financial needs with personal finance. There are many other situations when a business loan becomes necessary. This book will give you some insights about getting and managing business loans. Download and read this easy to read and understand book.

  • ISBN: 9781370882731
  • Author: Word Chapter
  • Published: 2016-09-03 19:40:19
  • Words: 7338
Business Loans (Volume 2) Business Loans (Volume 2)